On 1 April 2025, the Ministry of Finance, through the Excise Department, enforced the final phase of the excise tax regime on sugar-sweetened beverages. This final phase constitutes the fourth scheduled increase since the progressive sugar tax scheme was introduced in 2017. Beverage manufacturers and producers of sweetened products are subject to increased excise tax rates based on sugar content, unless they reformulate their products to reduce sugar levels.
The primary objective of this regulatory measure is to incentivize manufacturers to decrease the sugar content in their products, thereby promoting public health and mitigating the risks associated with excessive sugar consumption, including obesity, diabetes, and hypertension.
Under the final phase of the sugar-based excise tax, the following sugar-contained beverages shall be subject to sugar tax based on the amount of sugar contained as follows:
- Beverages containing 6 grams or less of sugar per litre remain exempt from the excise tax, which is consistent with Phase III.
- For beverages with sugar content between 6 – 8 grams per litre, the excise tax has increased from 0.3 THB to 1 THB per litre.
- For those containing 8 – 10 grams per litre, the rate has risen from 1 THB to 3 THB per litre.
- For beverages with 10 – 14 grams per litre, the tax has been increased from 3 THB to 5 THB per litre.
- Beverages with sugar content between 14–18 grams per litre and those exceeding 18 grams per litre remain subject to the maximum tax rate of 5 THB per litre, which is unchanged from the prior phase.
The Excise Department anticipates that the final phase of implementation will not cause a significant increase in retail prices for consumers. This expectation is grounded in the observation that producers have progressively adjusted their formulations, primarily by reducing sugar levels or substituting sugar with artificial or natural sweeteners that are considered to have lower adverse health effects.
From 2018 to 2023, the data indicates that many sweetened beverages were reformulated to contain less sugar accordingly. On the other hand, high-sugar drinks became less popular and less common. The beverage with over 14 grams of sugar per litre significantly decreased from 819 to none, and beverages with 10 – 14 grams of sugar fell from 2,993 to 524.
The finalisation of the sugar-based excise tax marks a significant regulatory step in aligning Thailand’s fiscal policy with public health objectives. Manufacturers are strongly encouraged to continue reformulating products to comply with the current excise framework, thereby minimising tax liabilities while contributing to the nation’s broader health agenda.
Implementation of Final Phase of Sugar-Based Excise Tax under Thai Excise Law_Bangkok Global Law